CANBERRA

Dried Skim Milk
MR. PHILLIPS outlined Australia's views as explained by Dr.

Westerman in plenary. [2] He advised that Australia's detailed
request was for import quota of 25% of Japan's imports or 3 1/2m.

lb., whichever was the greater.

MR. UYAMA explained that it was not correct to say M.I.T.I.

imported powdered milk. Most of the powdered milk imported was for
School Lunch Programme supplied by C.C.C. at reduced prices.

MR. PHILLIPS said that we had understood that recent prices were
108A. per ton c.i.f. and that Australia could meet this price.

MR. UYAMA said that latest C.C.C. prices were actually $80-$90 per
ton c.i.f.

In reply to a question by Mr. Campbell, Mr. Uyama advised that he
did not think that there was any particular interest in
reconstitution at present although he confirmed that there had
been discussion on this line in the recent past.

In reply to Mr. Phillips, Mr. Uyama said that the School Lunch
powdered milk was purchased on behalf of an Association.

Apparently the Association has a contract of some sort with C.C.C.

This covers most of the imports.

Imports are licensed under 'Miscellaneous' with no specific
allocation.

MR. PHILLIPS enquired whether the position was in effect that
there was no commercial market for dried skim milk.

MR. UYAMA suggested that any commercial market would be for stock
food. A market may develop but there was no guide at present.

There was a small local industry.

MR. PHILLIPS asked whether dried milk could be put on A.A.

MR. UYAMA said that as there was no substantial demand other than
for School Lunch A.A. had not been considered.

MR. PHILLIPS suggested A.A. might be an alternative request since
the item is small and demand fairly well defined.

MR. UYAMA summarised the position as:

i. Imports almost all for School Lunch Programmes from C.C.C.

ii. Some domestic production.

iii. Need for commercial import not yet felt.

iv. Tokyo could be approached on A.A. but may be difficulties,
domestic producers may have to be considered.

It was agreed to leave dried skim milk for further consideration.

Dried Vine Fruit
MR. PHILLIPS explained that licences were apparently not available
for Australian dried vine fruit but could be obtained for fruit
from other countries.

MR. UYAMA explained that there were no planned imports of dried
fruit which were a 'Miscellaneous' item. Imports shown from U.S.A.

were probably for P.X. and hotel trade. There was a trade
arrangement with Greece and dried fruits had been insisted on.

Similarly Iraq (?) had insisted early this year that Japan
purchase dried fruit at the risk of complete cessation of buying
from Japan.

(N.B. There was some confusion in the minds of the Japanese
delegation as to what was meant by dried vine fruit: they insist
that they do not import from Israel and suggest it should be
Iraq.)

MR. UYAMA pointed out that they were importing dried vine fruit
only under exceptional circumstances. They ware also importing
from Cyprus under an agreement.

He explained that these agreements did not commit Japan to
purchase but required an allocation to be made.

The demand was for confectionery and was not large nor constant.

In fact importers often requested allocations be reduced.

MR. PHILLIPS inquired whether A.A. was a possibility.

MR. UYAMA said that the item was one which gave rise to constant
discussion and it was doubtful if it would be considered suitable
for A.A. He asked whether Australia was competitive with Greece
etc.

MR. PHILLIPS said that our exporters said that they were
competitive but that Japanese importers had reported being unable
to get licences.

MR. CAMPBELL said that our dried fruit commanded a premium in U.K.

It was agreed that the item be referred to plenary.